FX.co ★ South Korean Won Weakens Amid Dollar Strength

The South Korean won depreciated to approximately 1,454 against the US dollar, reversing its course after three days of stability due to the strengthening US dollar and changes in global trade dynamics affecting investor confidence. This shift occurred in response to unexpectedly robust US trade data, which highlighted a significant reduction in the trade deficit driven by a decline in imports, overshadowing positive domestic economic indicators in South Korea. On Thursday, South Korea announced its highest-ever current account surplus for the month of November, totaling $12.24 billion—almost double the previous month’s $6.81 billion—propelled by strong exports and a resurgence in the semiconductor industry. Despite these strong economic fundamentals, earlier gains of the won had been constrained below the 1,450 mark amid predictions of sustained government intervention. However, the currency finally exceeded the 1,450 threshold for the first time this year, indicating renewed pressure from capital outflows and a stronger US dollar.